NHL Buyouts: Understanding the process and potential Kraken candidates

As the Seattle Kraken wrapped up their final game of a disappointing 2024-25 season, the focus now turns to the offseason. Team president and CEO Tod Leiweke hinted at an “eventful” summer during a recent season ticket holder event. One of many looming questions surrounding next season’s team is how it can improve. There has been plenty of speculation in the market that general manager Ron Francis will execute buyouts—something he hasn’t yet done with Seattle. So how would this look if he did decide to utilize this option?

Philipp Grubauer and Andre Burakovsky have both surfaced in that speculation, so we will use their contracts to understand the ramifications. To be clear, this article is not advocating for either to lose their jobs. Instead, we aim to explain how NHL buyouts work, the math behind them, and what alternatives exist before diving into whether a buyout makes sense for either player.

How the NHL buyout process works

Timing

Buyouts are only allowed during a specific window: starting June 15 or 48 hours after the Stanley Cup Final ends (whichever is later) and ending on June 30. Over the last five seasons, the Cup has been awarded between June 13 and June 26.

Waivers

Before a buyout can occur, the player must be placed on unconditional waivers. According to CBA Article 13.23:

“Unconditional Waivers shall be required for the purpose of Buy-Out or Mutual Termination of a Player’s contract.”

Waivers last 24 hours, allowing other NHL teams to claim the player. While no buyout-targeted player has ever been claimed, the opportunity technically exists. Players with no-movement clauses cannot be waived and thus cannot be bought out unless they waive that clause.

Age and term

The amount a team owes a player in a buyout depends on the player’s age at the time of the buyout. Here’s how it breaks down:

• 26 and older: two-thirds of remaining salary, smoothed evenly over twice the remaining contract term
• 25 and younger: one-third of remaining salary, smoothed evenly over twice the remaining contract term

Buyout formula for annual cap hit

To calculate the actual cap hit the team incurs during a buyout, the following formula is used:

Cap Hit = AAV – (Annual Salary – Buyout Payment)

“Annual salary” means the real dollars owed to the player, whereas the AAV is the player’s cap hit.

Buyout math: A Grubauer case study

Here’s a breakdown using Philipp Grubauer’s contract as an example:

• 2025-26 AAV: $5.9M | Salary: $5.6M
• 2026-27 AAV: $5.9M | Salary: $4.5M
• Total Salary owed: $10.1M

The Average Annual Value (AAV) is calculated by averaging the total value of the contract over its full term. Actual salary reflects what the player is paid each season and can vary year to year. Understanding this difference is essential when calculating the impact of a buyout.

At 33 years old, Grubauer would be paid two-thirds of his remaining $10.1 million salary—$6.73 million—smoothed evenly over four years, which is twice the remaining term of his contract, so $1.68 million per season.

While the yearly cap hit is reduced, the penalty lingers for twice the remaining contract term—and in this case, the team must still acquire a replacement goaltender, adding further cost to the equation.

Alternatives to a buyout

1. Burying in the AHL

A team can waive and assign a player to the AHL. Due to the Wade Redden rule, only $1.15M is exempt from the salary cap. The rest remains on the books:

• 2025-26 – $4.75M cap hit, $1.15M savings
• 2026-27 – $4.75M cap hit, $1.15M savings

Grubauer would remain available as an injury replacement if buried in the AHL, providing organizational depth. This setup gives the Kraken a safety net in case of injuries at the NHL level. Seattle utilized a similar structure with Chris Driedger, who played the AHL after recovering from injury but still under contract and capable of stepping in if needed. A benefit to this approach is that the cap hit lasts only two years, rather than four under a buyout, even though the annual hit is higher. This approach would require the Kraken to acquire another backup goaltender, adding to the overall cost but preserving veteran depth within the organization.

2. Play out the contract

The Kraken could keep Grubauer through 2026-27 at the full $5.9M cap hit per season. While this is the most cost-effective approach on paper, it hinges on a return to form from a goaltender who has yet to have a season with higher than a .900 save percentage with the Kraken. To his credit, Grubauer showed signs of improvement since a stint in the AHL, going 3-2 with a .915 save percentage over his final five appearances. Keeping him avoids the need to acquire a new backup immediately and allows the Kraken to reassess a buyout after next season if needed. However, if he struggles again, finding a capable replacement midseason could be more difficult than securing one in the offseason.

3. Mutual termination

While rare, mutual terminations have occurred. Brandon Saad terminated his contract with the St. Louis Blues, walking away from $5.43 million to sign a one-year, $1.5 million deal with the Vegas Golden Knights. The Kraken have also used this approach, mutually terminating Michal Kempny’s contract after he failed to make the team out of training camp and opted to return to Europe. These examples are uncommon and situational.

Grubauer on the other hand is due $10.1 million, so it is hard to see anybody walking away from that kind of money.

What to do with Grubauer?

Grubauer is currently the backup to Joey Daccord. If bought out, the Kraken would need a replacement. Of the 13 goalies set to become unrestricted free agents, only four posted a save percentage above .900 last season. The average AAV among this group is approximately $2.31 million; for simplicity, we’ll estimate $2.5 million for a NHL backup goaltender and use that figure when comparing the financial impact of a buyout, burying the contract, or retaining Grubauer.

Comparision of options

Keeping Grubauer is the cheapest option, but continuing with a sub-.900 goaltender may not help Seattle improve. Burying his cap hit provides flexibility and coverage but carries a higher annual cap hit. If the Kraken can find a reliable backup in the $1–$1.5 million range, burying the contract could become a more attractive option. However, the most practical path appears to be a buyout, which would provide some savings and effectively end the Grubauer era in Seattle.

A second case study: Burakovsky

Burakovsky has underperformed, but his recent chemistry with Shane Wright and Jared McCann complicates matters. Here’s his buyout math:

Burakovsky finished with 37 points and had 15 in his final 20 games. Finding a similarly productive replacement could cost more than his current $5.5 million AAV.

Only three UFA wingers under the age of 30 topped 37 points: Mitch Marner, Nikolaj Ehlers, and Brock Boeser—all likely to command higher salaries. Jani Nyman has already emerged as a strong internal option and has positioned himself for a spot on the roster. However, a top-nine forward position would need to open up for him to secure regular ice time. While his 41-point pace over 12 games is encouraging, it isn’t a significant upgrade over Burakovsky’s 2024-25 production. The real risk is that if Nyman doesn’t hit the ground running, the Kraken could find themselves in another season without meaningful offensive improvement.

Burakovsky could remain with the team as an insurance policy. He offers roster stability and provides dependable depth in case of injuries or if other players, like Nyman, don’t meet expectations.

With Burakovsky’s 62-point pace near the end of the season, it’s possible he could generate trade interest. This is where a buyout becomes a coin flip. The Kraken had only one 60-point player—Jared McCann—during the 2024-25 season. Losing a scoring forward like Burakovsky, especially in an area the team is actively trying to improve, could set the offense back unless a clear upgrade is secured.

Final thoughts

Buyouts offer short-term savings at the cost of long-term cap hits. The added expense of a replacement player often cancels out the savings. Still, they free up roster spots and may be necessary if Seattle wants to retool.

With the salary cap rising to $95.5 million, the Kraken front office has options. Now that you know how buyouts work, what would you do? Would you buy out, bury, or hold onto players like Grubauer and Burakovsky?